A: Between 0% and 85% of your Social Security benefits will be counted as ordinary income and taxed at your marginal tax rate. The taxable portion is determined by looking at your “Provisional Income,” which only counts half of your Social Security, but all your other income (including tax-free interest from municipal bonds). You will …View Article
A: In 2021, most people on Medicare will pay a monthly premium of $148.50 per month for part B. However, high income seniors will pay more. This higher premium affects around 7% of Medicare beneficiaries. The increased premium is known as an Income Related Monthly Adjustment Amount (IRMAA). Individuals who earn more than $88,000 (Modified …View Article
A: The table below shows your Full Retirement Age (FRA) based on when you were born: Birth Year Full Retirement Age 1943-1954: 66 1955: 66 and 2 months 1956: 66 and 4 months 1957: 66 and 6 months 1958: 66 and 8 months 1959: 66 and 10 months 1960 & later: 67
A: Widows and divorcees have the same full retirement age (FRA) as everyone else. However, widows (or surviving divorced spouses) can claim survivor benefits as early as age 60. Divorcees can claim benefits at age 62 even if the ex-spouse (age 62 or older) has not filed yet for benefits. Note: you must have been …View Article
A: You can only do this within 12 months of filing for benefits. You used to be able to do so anytime prior to age 70. Lots of financial advisors talked about this possibility, but few people actually did it. In any case, this option was eliminated in 2010.
A: If you were married for 10 years and are not currently remarried, you can claim benefits on your prior spouse’s record. In this day and age, it is not uncommon for two or three people to be claiming spousal benefits on one person’s work record.
A: You can collect Social Security Survivor benefits once you are at least 60 years old, or younger in the case of accidental death or if you are caring for a child under the age of 16. There is a reduction in benefits if you choose to collect survivor benefits prior to your full retirement …View Article
A: You must be married for one year before you are entitled to spousal benefits.
A: You accrue “Delayed Retirement Credits,” which increase your benefits at a rate of 2/3rds of 1% for every month (8% per year, simple interest, not compounded) you wait beyond your full retirement age. Your benefits can increase by 32% if your full retirement age is 66 and you delay collecting until age 70.
A: Claiming your own Social Security benefit at age 62 reduces your monthly benefit by 25%. However, claiming spousal benefits (at age 62) results in a 30% reduction. This equates to approximately .625% for each month prior to your full retirement age. However the reduction is not even. There is a .694% reduction for each …View Article